ANNEX XI
LIABILITY RISK GROUPS, RISK FACTORS AND CORRELATION COEFFICIENTS FOR THE LIABILITY RISK SUB-MODULE
|
i |
Liability risk group i |
Risk factor f(liability,i) |
|
1 |
Professional malpractice liability insurance and proportional reinsurance obligations other than professional malpractice liability insurance and reinsurance for self-employed craftspersons or artisans |
100 % |
|
2 |
Employers liability insurance and proportional reinsurance obligations |
160 % |
|
3 |
Directors and officers liability insurance and proportional reinsurance obligations |
160 % |
|
4 |
Liability insurance and reinsurance obligations included in lines of business 8 and 20 as set out in Annex I, other than obligations included in liability risk groups 1 to 3 and other than personal liability insurance and proportional reinsurance and other than professional malpractice liability insurance and reinsurance for self-employed craftspersons or artisans |
100 % |
|
5 |
Non-proportional reinsurance of obligations relating to insurance obligations included in line of business 8 as set out in Annex I |
210 % |
For the purpose of the above table, the following definitions shall apply:
Professional malpractice liability insurance obligations mean liability insurance obligations included in line of business 8 as set out in Annex I which cover liabilities arising out of professional practice in relation to clients and patients;
Employers liability insurance obligations mean liability insurance obligations included in line of business 8 as set out in Annex I which cover liabilities of employers arising out of death, illness, accident, disability or infirmity of an employee in the course of the employment;
Directors and officers insurance obligations mean liability insurance obligations included in line of business 8 as set out in Annex I which cover liabilities of directors and officers of a company, arising out of the management of that company, or losses of the company itself to the extent it indemnifies its directors and officers in relation to such liabilities.
Personal liability insurance obligations mean liability insurance obligations included in line of business 8 as set out in Annex I which cover liabilities of natural persons in their capacity of private householders.
LIABILITY RISK CORRELATION COEFFICIENTS
|
j i |
1 |
2 |
3 |
4 |
5 |
|
1 |
1 |
0 |
0,5 |
0,25 |
0,5 |
|
2 |
0 |
1 |
0 |
0,25 |
0,5 |
|
3 |
0,5 |
0 |
1 |
0,25 |
0,5 |
|
4 |
0,25 |
0,25 |
0,25 |
1 |
0,5 |
|
5 |
0,5 |
0,5 |
0,5 |
0,5 |
1 |